Dollar ticks up after upbeat US growth figures

Tokyo - The dollar stayed firm against the yen on Friday after upbeat US growth data suggested the world's top economy was weathering a slowdown in China, ahead of a key Federal Reserve summit of central bankers.

In Tokyo afternoon trading, the dollar bought ¥121.02, flat from New York and higher than the ¥119.98 a day earlier.

The euro was stronger at $1.1257 against $1.1239 in US trade, while it rose to ¥136.29 from ¥136.03.

Sentiment got a boost after the Commerce Department reported on Thursday that the US economy grew at an annual rate of 3.7% in the second quarter, much higher than the 2.3% initially estimated.

The strong figures come amid uncertainty over the timeline for a Fed interest rate hike, as market turmoil and fears about China have dealt a blow to expectations for a rise as early as next month.

Central bankers and other top experts from around the world are headed to Jackson Hole, Wyoming, for the annual Fed symposium.

"With some stability in China expected this week, and good data, the chatter at JH (Jackson Hole) is going to get just that bit more interesting," National Australia Bank said in a commentary.

Investors were closely monitoring the pow-wow for insight on when the Fed would begin raising its zero-level federal funds rate. A rate increase generally lifts the dollar as investors seek higher returns.

"The Fed will desperately try to raise rates in 2015, but they'd certainly like to see stability in equity markets before they do," Derek Mumford, director at Rochford Capital in Sydney, told Bloomberg News.

The dollar was mixed against other Asia-Pacific currencies.

It fell to Sg$1.4027 from Sg$1.4034 on Thursday, to 46.64 Philippine pesos from 46.70 pesos, and to 1 175.90 South Korean won from 1 184.44 won.

It also dropped to Tw$32.28 from Tw$32.35 and to 14 038 Indonesian rupiah from 14 066 rupiah.

But it rose to 35.85 Thai baht from 35.65 baht and to 66.08 Indian rupees from 66.02 rupees.

The Australian dollar firmed to 71.68 US cents from 71.13c, while the Chinese yuan fetched ¥18.93 against ¥18.68.